Propane supplier Inergy, L.P. (NRGY) reported Monday a narrower net loss for the fourth quarter. Meanwhile, loss allocable to limited partners widened from a year ago, reflecting a steep decline in revenues. Inergy noted that it typically reports a loss in the fourth quarter because of the seasonal nature of the propane industry. The company also provided an earnings outlook for fiscal 2010.
For the fourth quarter ended September 30, 2009, net loss narrowed to $32.8 million from $33.1 million a year ago.
Total limited partners' interest in net loss widened to $45.5 million from $42.4 million in the previous year. On a per limited partner unit basis, loss narrowed to $0.79 from 0.85 per limited partner unit, as weighted average limited partners' units outstanding increased year-over-year to 57.54 million from 50.04 million.
On average, eight analysts polled by Thomson Reuters expected the company to report loss of $0.48 per unit for the fourth quarter. Analysts' estimate typically excludes special items.
The results of the latest quarter included loss on disposal of excess property, plant and equipment of $1.1 million, compared to $12.3 million in the past year. Gain from the derivative contracts associated with retail propane fixed price sales dipped to $0.1 million from $0.6 million.
Excluding items, net loss widened to $31.8 million or $0.77 per limited partner unit from $21.4 million or $0.62 per limited partner unit in the same quarter of last year.
Revenues for the period dropped to $231.5 million from $340.9 million in the fourth quarter of the prior fiscal year. Six analysts were expecting revenue of $308.53 million in the fourth quarter.
Revenue from Propane sales came down to $135.8 million from $237.2 million, and Other revenues decreased to $95.7 million from $103.7 million.
Gross profit for the three month period climbed to $90.0 million from $87.7 million in the year-earlier quarter, as cost of propane sold declined sharply to $89.3 million from $191.0 million.
Quantity of retail propane sales slid to 39.0 million gallons from 42.2 million gallons in the corresponding quarter of fiscal 2008.
For the full year, net income attributable to limited partners rose to $53.6 million or $1.00 per limited partner unit from $28.7 million or $0.57 per unit in fiscal 2008. Adjusted earnings improved to $108.0 million or $1.12 a limited partner unit from $76.7 million or $0.81 a unit in the past year. Analysts were looking for earnings of 1.42 per limited partner unit.
Revenues slid to $1.57 billion from $1.88 billion. Analysts had forecast revenues of 1.65 billion. The company sold 310.0 million retail propane gallons during the year, down from 331.9 million gallons sold in fiscal 2008.
Meanwhile, Inergy Holdings L.P. (NRGP) posted a fourth-quarter net income applicable to limited partners' units of $12.4 million or 0.61 per limited partner unit, compared to $4.5 million or 0.23 per limited partner unit in the year ago quarter. Revenues for the quarter were $231.5 million, a decrease from $340.9 million in the prior-year quarter.
For the full year, Inergy Holdings recorded net income attributable to limited partners' units of $56.5 million or $2.80 per limited partner unit, compared to $35.0 million or $1.73 a unit last year. Revenues dropped to $1.57 billion from $1.88 billion.
Looking ahead, for fiscal year 2010, Inergy LP expects net income allocable to limited partners of $55 million - $60 million. Analysts are currently looking for earnings of $1.41 per unit. The company expects to sell 309 - 325 retail gallons in the entire year.
Further, Inergy LP projects capital expenditures associated with its previously disclosed midstream expansion projects to be about $100 million for fiscal 2010.
NRGY is currently trading at $33.23, down $0.07 or 0.21%, on the NASDAQ.
NRGP is currently trading at $54.00, up $0.54 or 1.01%, on the NASDAQ.
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